SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 1
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
August 30, 2002
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Date of Report (Date of Earliest Event Reported)
AMERICAN REALTY INVESTORS, INC.
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(Exact Name of Registrant as Specified in its Charter)
Nevada 1-15663 75-2847135
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(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
1800 Valley View Lane, Suite 300, Dallas, TX 75234
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (469) 522-4200
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
In 2002, American Realty Investors, Inc. ("ARI") has sold a significant amount
of its properties, as follows:
Sale Units/ Sales Gain/(Loss)% of ARI's
Date Property Location Sq.Ft./Acres Price on Sale Assets Purchaser
---- -------- -------- ------------ ----- --------- -------- ---------
(dollars in Thousands)
Apartments
01/18/02 Villas Plano, TX 208 Units $ 8,525 $ 5,615 0.29% First Guaranty Exchange Company
03/20/02 Mallard Lake Greensboro, NC 336 Units 14,400 -- 0.42% Grand Lagoon Associates, Ltd.,
Park Avenue Associates, Ltd.,
Governor's Square Associates, Ltd.,
IG Ashford Regency Partners, L.P.; ISV
Greenbriar Associates, Ltd., ART
Westwood Associates, Ltd.
05/02/02 Stonebridge Florissant, MO 100 Units 4,340 3,081 0.14% Florissant Townhomes, Inc.
06/13/02 Oak Hill Tallahassee, FL 92 Units 3,200 527 0.28% Oak Hill Apartments, LLC
06/24/02 Regency on Kennedy Tampa, FL 78 Units 3,200 (1,458) 0.54% Regency Property Group, LLC
07/11/02 Woodsong Smyrna, GA 190 Units 9,200 7,028 0.17% Woodsong Apartments Partners, L.P.
07/31/02 Valley Hi Tallahassee, FL 54 Units 1,452 435 0.11% Villas San Carlo, LLC
07/31/02 White Pines Tallahassee, FL 85 Units 764 (48) 0.09% Villas San Carlo, LLC
08/30/02 Morning Star Tallahassee, FL 82 Units 2,217 641 0.18% Villas San Carlo II, LLC
08/30/02 Stonegate Tallahassee, FL 83 Units 1,785 (120) 0.23% Villas San Carlo II, LLC
Commercial
03/08/02 Oaktree Village Lubbock, TX 45,623 Sq.Ft. 912 -- 0.21% Transcontinental Realty Investors,
Inc. ("TCI")
06/26/02 Centura Tower Farmers Branch, TX 410,901 Sq.Ft. 50,000 -- 6.01% TCI
Land
01/11/02 Thompson II Dallas County, TX 0.2 Acres 21 (11) 0.00% City of Dallas, Texas
02/26/02 Katrina Palm Desert, CA 2.1 Acres 1,323 978 0.03% BP West Coast Products, LLC
03/08/02 Lakeshore Villas Harris County, TX 16.9 Acres 1,499 -- 0.17% TCI
03/08/02 Rasor Plano, TX 24.5 Acres 1,211 -- 0.16% TCI
03/08/02 Vista Ridge Lewisville, TX 10.0 Acres 1,525 401 0.13% Lewisville Independent School District
04/10/02 Mason Goodrich Houston, TX 7.9 Acres 672 269 0.05% Glen R. Ginter, DDS
05/03/02 Mason Goodrich Houston, TX 10.3 Acres 1,444 895 0.06% Metropolitan Transit Authority
06/13/02 Hollywood Casino Farmers Branch, TX 42.8 Acres 16,987 -- 1.25% TCI
06/26/02 Marine Creek Ft. Worth, TX 54.2 Acres 3,700 -- 0.31% TCI
06/26/02 Mason Goodrich Houston, TX 18.0 Acres 2,790 -- 0.11% TCI
06/26/02 Monterrey Riverside, CA 65.0 Acres 4,625 -- 0.60% TCI
06/26/02 Nashville Nashville, TN 16.6 Acres 1,890 -- 0.12% TCI
08/07/02 Elm Fork Denton County, TX 14.5 Acres 2,745 1,615 0.12% Lewisville Independent School District
08/16/02 Elm Fork Denton County, TX 14.2 Acres 1,526 491 0.12% Alta Carrollton, L.P.
-------- ------- -----
$141,953 $20,339 11.90%
======== ======= =====
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Proforma statements of operations are presented for the year ended December 31,
2001, and the six months ended June 30, 2002. The proforma statements of
operations present ARI's operations as if the transactions described above had
occurred at January 1 of each of the periods presented. A proforma balance sheet
as of June 30, 2002, is also presented. The proforma balance sheet presents the
property sales described above, as if they had occurred at January 1, 2002.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED CONSOLIDATED BALANCE SHEET
JUNE 30, 2002
Valley White Morning Elm
Actual/(1)/ Woodsong/(2)/ Hi/(2)/ Pines/(2)/ Star/(2)/ Stonegate/(2)/ Fork/(2)/ Proforma
----------- ------------- ------- ---------- --------- -------------- --------- ----------
(dollars in thousands)
Assets
Real estate held for
investment.............. $ 442,583 $ (4,703) $ (926) $ (748) $ (1,346) $ (1,886) $ -- $ 432,974
Less - accumulated
depreciation............ (112,614) 3,455 94 72 152 180 -- (108,661)
----------- ------------- ------- ---------- --------- -------------- --------- ---------
329,969 (1,248) (832) (676) (1,194) (1,706) -- 324,313
Real estate held for
sale.................... 195,881 -- -- -- -- -- (1,850) 194,031
Notes and interest
receivable
Performing............. 28,206 -- -- -- -- -- -- 28,206
Non-performing......... 7,516 -- -- -- -- -- -- 7,516
Less - allowance for
losses................ (2,577) -- -- -- -- -- -- (2,577)
----------- ------------- ------- ---------- --------- -------------- --------- ---------
33,145 -- -- -- -- -- -- 33,145
Net pizza parlor
equipment............... 7,373 -- -- -- -- -- -- 7,373
Marketable equity
securities, at market
value................... 90 -- -- -- -- -- -- 90
Cash and cash
equivalents............. 2,631 (39) (4) (3) 3 (3) -- 2,585
Investments in equity
investees............... 81,170 -- -- -- -- -- -- 81,170
Intangibles, net of
accumulated
amortization............ 15,565 -- -- -- -- -- -- 15,565
Other assets............. 36,839 (9,408) 783 650 (183) 603 12 29,296
----------- ------------- ------- ---------- --------- -------------- --------- ---------
$ 702,663 $ (10,695) $ (53) $ (29) $ (1,374) $ (1,106) $ (1,838) $ 687,568
=========== ============= ======= ========== ========= ============== ========= =========
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED CONSOLIDATED BALANCE SHEET - Continued
JUNE 30, 2002
Valley White Morning Elm
Actual/(1)/ Woodsong/(2)/ Hi/(2)/ Pines/(2)/ Star/(2)/ Stonegate/(2)/ Fork/(2)/ Proforma
----------- ------------- ------ ---------- --------- -------------- --------- --------
(dollars in thousands)
Liabilities and Equity
Notes and interest payable .............. $ 532,557 $ (8,302) $ -- $ -- $ (1,199) $ (1,036) $ (3,498) $518,522
Margin borrowings ....................... 26,005 -- -- -- -- -- -- 26,005
Other liabilities ....................... 58,087 (82) (23) (16) (49) (42) -- 57,875
----------- ---------- ----- ------ -------- --------- -------- --------
616,649 (8,384) (23) (16) (1,248) (1,078) (3,498) 602,402
Minority interest ....................... 22,193 -- -- -- -- -- -- 22,193
Stockholders' Equity
Preferred stock ......................... 4,950 -- -- -- -- -- -- 4,950
Common stock ............................ 114 -- -- -- -- -- -- 114
Paid-in capital ......................... 112,184 -- -- -- -- -- -- 112,184
Accumulated (deficit) ................... (56,161) (2,311) (30) (13) (126) (28) 1,660 (57,009)
Accumulated other comprehensive income .. 2,734 -- -- -- -- -- -- 2,734
----------- ---------- ----- ------ -------- --------- -------- --------
63,821 (2,311) (30) (13) (126) (28) 1,660 62,973
----------- ---------- ----- ------ -------- --------- -------- --------
$ 702,663 $ (10,695) $ (53) $ (29) $ (1,374) $ (1,106) $ (1,838) $687,568
=========== ========== ===== ====== ======== ========= ======== ========
__________
(1) Includes properties sold prior to June 30, 2002.
(2) Assumes sale by ARI on January 1, 2002.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS (1)(2)
SIX MONTHS ENDED JUNE 30, 2002
Actual Apartments/(3)/ Commercial/(4)/ Land/(5)/ Proforma
------ --------------- --------------- --------- --------
(dollars in thousands)
Property revenue
Rents .................................. $ 56,842 $ (2,682) $ (3,116) $ -- $ 51,044
Property operations expenses ........... 39,800 (1,226) (1,812) (1,973) 34,789
----------- ----------- ----------- ------------ -----------
17,042 (1,456) (1,304) 1,973 16,255
Land operations
Sales .................................. 20,701 -- -- 4,270 24,971
Cost of sales .......................... 17,338 -- -- 2,164 19,502
----------- ----------- ----------- ------------ -----------
3,363 -- -- 2,106 5,469
Pizza parlor operations
Sales .................................. 18,276 -- -- -- 18,276
Cost of sales .......................... 14,747 -- -- -- 14,747
----------- ----------- ----------- ------------ -----------
3,529 -- -- -- 3,529
Income from operations ................... 23,934 (1,456) (1,304) 4,079 25,253
Other income
Interest and other ..................... 1,723 -- 47 (45) 1,725
Equity in loss of investees ............ (9,233) -- -- -- (9,233)
Loss on sale of investments in
equity investees ..................... (531) -- -- -- (531)
----------- ----------- ----------- ------------ -----------
(8,041) -- 47 (45) (8,039)
Other expense
Interest ............................... 36,269 (1,032) (3,553) (4,124) 27,560
Depreciation and amortization .......... 7,909 (258) (1,282) -- 6,369
General and administrative ............. 6,481 -- -- (4) 6,477
Advisory fee to affiliate .............. 3,252 (21) (32) (17) 3,182
Minority interest ...................... 1,560 -- -- -- 1,560
----------- ----------- ----------- ------------ -----------
55,471 (1,311) (4,867) (4,145) 45,148
----------- ----------- ----------- ------------ -----------
Net income (loss) from continuing
operations ............................. $ (39,578) $ (145) $ 3,610 $ 8,179 $ (27,934)
=========== =========== =========== ============ ===========
Earnings per share - basic and
diluted
Net loss from continuing operations ... $ (3.48) $ (2.46)
=========== ===========
Weighted average Common shares
used in computing earnings
per share ............................. 11,375,127 11,375,127
=========== ===========
_________________
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AMERICAN REALTY INVESTORS, INC.
NOTES TO PROFORMA COMBINED
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2002
(1) The Proforma Combined Statement of Operations assumes that each property
was sold by ARI on January 1, 2002.
(2) Operating results for sold properties are their actual operating results
from January 1 to their respective date of sale.
(3) Includes the Villas Apartments sold in January 2002; Mallard Lakes
Apartments sold in March 2002; Stonebridge Apartments sold in May 2002; Oak
Hill and Regency on Kennedy Apartments sold in June 2002; Woodsong, Valley
Hi and White Pines Apartments sold in July 2002; and Morning Star and
Stonegate Apartments sold in August 2002.
(4) Includes the Oaktree Village Shopping Center sold in March 2002 and the
Centura Tower Office Building sold in June 2002.
(5) Includes the partial sale of the Thompson II land parcel in January 2002;
the partial sale of the Katrina land parcel in February 2002; the sale of
the Rasor land parcel and the partial sale of the Lakeshore Villas and
Vista Ridge land parcels in March 2002; the partial sale of the Mason
Goodrich land parcel in April 2002; the partial sale of the Mason Goodrich
land parcel in May 2002; the sale of the Hollywood Casino, Marine Creek and
Monterrey land parcels and the partial sale of the Mason Goodrich and
Nashville land parcels in June 2002; and the partial sale of the Elm Fork
land parcel in August 2002.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS /(1)(2)/
YEAR ENDED DECEMBER 31, 2001
Actual Apartments/(3)/ Commercial/(4)/ Land/(5)/ Proforma
----------- --------------- --------------- ----------- -----------
Property revenue (dollars in thousands)
Rents. ..................................... $ 110,414 $ (8,296) $ (4,473) $ -- $ 97,645
Property operations expenses ............... 81,926 (4,263) (3,473) (2,656) 71,534
----------- --------------- --------------- ----------- -----------
28,488 (4,033) (1,000) 2,656 26,111
Land operations
Sales....................................... 45,290 -- -- 41,569 86,859
Cost of sales .............................. 36,083 -- -- 36,931 73,014
----------- --------------- --------------- ----------- -----------
9,207 -- -- 4,638 13,845
Pizza parlor operations
Sales ...................................... 34,211 -- -- -- 34,211
Cost of sales .............................. 27,934 -- -- -- 27,934
----------- --------------- --------------- ----------- -----------
6,277 -- -- -- 6,277
Income from operations ........................ 43,972 (4,033) (1,000) 7,294 46,233
Other income
Interest and other ......................... 2,448 (160) (2) -- 2,286
Equity in loss of investees ................ (13,352) -- -- -- (13,352)
Loss on sale of investments in equity
investees ........................ (387) -- -- -- (387)
----------- --------------- --------------- ----------- -----------
(11,291) (160) (2) -- (11,453)
Other expense
Interest ................................... 68,876 (2,502) (5,958) (11,915) 48,501
Depreciation and amortization .............. 16,471 (677) (2,431) -- 13,363
General and administrative ................. 12,743 -- -- (5) 12,738
Advisory fee to affiliate .................. 6,715 (254) (384) (187) 5,890
Net income fee to affiliate ................ 166 1,494 777 1,940 4,377
Incentive fees to affiliate ................ 3,827 485 (470) -- 3,842
Litigation settlement ...................... 100 -- -- -- 100
Provision for loss ......................... 2,500 -- -- -- 2,500
Minority interest .......................... 972 -- -- -- 972
----------- --------------- --------------- ----------- -----------
112,370 (1,454) (8,466) (10,167) 92,283
----------- --------------- --------------- ----------- -----------
Net income (loss) from continuing
operations ................................. $ (79,689) $ (2,739) $ 7,464 $ 17,461 $ (57,503)
=========== =============== =============== =========== ===========
Earnings per share - basic and diluted
Net loss from continuing operations ........ $ (6.80) $ (4.91)
=========== ===========
Weighted average Common shares used
in computing earnings per share ............ 11,714,374 11,714,374
=========== ===========
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AMERICAN REALTY INVESTORS, INC.
NOTES TO PROFORMA COMBINED
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(1) The Proforma Combined Statement of Operations assumes that each property
was sold by ARI on January 1, 2001.
(2) Operating results for sold properties are their actual operating results
for 2001.
(3) Includes the Villas Apartments sold in January 2002; Mallard Lakes
Apartments sold in March 2002; Stonebridge Apartments sold in May 2002; Oak
Hill and Regency on Kennedy Apartments sold in June 2002; Woodsong, Valley
Hi and White Pines Apartments sold in July 2002; and Morning Star and
Stonegate Apartments sold in August 2002.
(4) Includes the Oaktree Village Shopping Center sold in March 2002 and the
Centura Tower Office Building sold in June 2002.
(5) Includes the partial sale of the Thompson II land parcel in January 2002;
the partial sale of the Katrina land parcel in February 2002; the sale of
the Rasor land parcel and the partial sale of the Lakeshore Villas and
Vista Ridge land parcels in March 2002; the partial sale of the Mason
Goodrich land parcel in April 2002; the partial sale of the Mason Goodrich
land parcel in May 2002; the sale of the Hollywood Casino, Marine Creek and
Monterrey land parcels and the partial sale of the Mason Goodrich and
Nashville land parcels in June 2002; and the partial sale of the Elm Fork
land parcel in August 2002.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
AMERICAN REALTY INVESTORS, INC.
Date: December 16, 2002 By: /s/ Ronald E. Kimbrough
-----------------------------------
Ronald E. Kimbrough
Executive Vice President and Chief
Financial Officer (Principal
Financial and Accounting Officer and
Acting Principal Executive Officer)
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